Try turning off Crossfire or use a different Crossfire mode, they are known to cause issues for some 3D programs new and old. Also try to disable all extra cores on your CPU or for a permanent solution patch the EXE with imagecfg.exe to use only a single thread.

just updated from 0.99 to 1.02, and while the smearing cursor in the menu problem is indeed fixed, it seems like the game is internally running in the 640*480 resolution, despite 1920*1200 being selected in the configurator. first screen is from 0.99, second from 1.02, notice the low resolution pixelated look;